Can You Raffle a House and Lot in the Philippines?

DTI Permit & Other Legal Requirements — A Practical Guide

Raffling off a house-and-lot is doable in the Philippines, but you cannot just sell tickets and draw a winner. Depending on the purpose and mechanics, it will fall under one of a few regulatory pathways—most commonly a DTI sales promotion. Below is a comprehensive, practitioner-style overview to help you structure a lawful raffle from end to end.

1) What exactly counts as a “raffle” (and when it’s illegal)

A “raffle” broadly means awarding a prize by chance from a pool of entries. In the Philippines, chance-based prize schemes are lawful only if they’re authorized under the proper regime. If you sell tickets to the general public without the right permit, it risks being treated as illegal gambling.

Typical lawful routes:

DTI Sales Promotion Permit (SPP) – for brands, developers, brokers, media pages, or any business running a promotion to advertise or boost sales/engagement, whether or not a purchase is required.
PCSO-authorized charity raffle – for fundraising raffles (e.g., civic, charitable, humanitarian purposes).
Restricted/closed-group raffles – e.g., within a private club, homeowners’ association, or company event with no public ticket sales; still observe local/LGU rules and consumer-protection standards.

If your plan involves public sale of raffle tickets and is not a sales promotion of a product/service, it usually belongs under the charity raffle track, not DTI.

2) The DTI Sales Promotion path (most common for businesses)

If your raffle promotes a product, service, real estate development, or brand, it will generally fall under DTI’s sales promotion rules.

2.1 Core obligations

Secure a DTI Sales Promotion Permit before launch. Apply ahead of time (build in lead time; DTI can require revisions).
Scope & duration. Promotions run for a fixed period (you’ll state start, end, draw date/s).
Bond. DTI commonly requires a surety bond (often pegged as a percentage of the total prize value) to guarantee prize delivery.
DTI supervision. Draws are conducted with DTI supervision or per approved procedure.
Mandatory disclosures. All ads/materials must show “Per DTI Fair Trade Permit No. ____ Series of ____.”
No misleading ads. Mechanics, odds, eligibility, and costs must be clear and not deceptive.
Record-keeping & post-promo report. Keep draw records, list of winners, proofs of prize delivery, and submit a terminal report if required.

2.2 Purchase requirement vs. “no purchase necessary”

With purchase (e.g., “Buy a unit to get entries” or “Reserve a unit for x entries”): Still allowed, but watch out for fairness and reasonableness—DTI may scrutinize barriers to entry.
No purchase necessary: Also allowed; provide a free and reasonable entry path.

2.3 Online raffles & influencers

Online entries, livestream draws, and influencer-hosted promos are allowed if the same DTI rules are followed: approved mechanics, proper disclosures, tamper-proof randomization, and supervised draw procedures.

3) The PCSO charity raffle path (public ticket sales to raise funds)

If your main purpose is fundraising through public sale of tickets (rather than promoting your business), the lawful route is to seek PCSO authority for a charity raffle. Expect:

Eligibility (entity must be qualified for charitable/civic purposes).
Permit/authority from PCSO and ticket controls (format, serials, price, audit trail).
Remittance & reporting obligations and oversight on proceeds.
Advertising with required legends and approvals.
Separate tax rules for charity raffles vs. sales promotions.

If you’re unsure whether your plan is “promotion” or “fundraising,” examine where the money comes from (ad spend vs. ticket proceeds) and the purpose (brand promotion vs. charitable project). Choose one track and comply strictly.

4) “Closed-group” / private raffles

For a non-public raffle limited to a defined membership or employees, you may avoid the public-raffle issues, but you still must:

Follow LGU event rules (permits for gatherings, public safety, noise, etc.).
Use fair, documented mechanics and announce winners transparently.
Avoid selling tickets to the general public unless you have DTI or PCSO clearance, as applicable.

5) Real-property–specific requirements (house & lot as the prize)

Giving away a real property as a prize adds layers beyond the raffle permit.

5.1 Title and property status

Clean title. The house/lot should be free from liens/encumbrances; if mortgaged, obtain the mortgagee’s written consent and a release plan aligned with the prize award.
Project compliance. If the house is in a subdivision/condo project, confirm the developer’s DHSUD (formerly HLURB) permits (e.g., License to Sell), building permits, and occupancy permits.
Deliverables. Describe what the winner receives (lot area, floor area, finishes, appliances/fixtures, parking, common area rights, membership dues, etc.).

5.2 Taxes, fees, and who pays what

Spell out in the mechanics who shoulders each item—this is a frequent source of disputes.

Prize/withholding tax on winnings. Prizes to individuals over certain thresholds are typically subject to final tax. Many promoters shoulder this; others require the winner to pay before claiming. State it clearly.
Capital Gains Tax (CGT) vs. Creditable Withholding (if the sponsor is a real-estate dealer). Determine which regime applies to the transferor and disclose who pays.
Documentary Stamp Tax (DST) on the conveyance.
Transfer Tax (provincial/city).
Registration fees at the Registry of Deeds; notarial fees.
Real property tax arrears (if any) up to turnover date.
Association/homeowners’ dues and move-in fees.

Best practice: Sponsor shoulders all taxes/fees related to transferring clean title, and the mechanics say so plainly. If any amounts are for the winner’s account (e.g., future HOA dues, utilities, interior fit-out), list them.

5.3 Timelines and turnover

Provide a clear turnover schedule (e.g., “within 120 days from draw date or within 30 days from winner’s submission of complete documents, whichever is later”).
Require the winner’s cooperation (IDs, TIN, marital status/SPA, bank details for tax purposes, signing of deed of conveyance).
If the property is under construction, be explicit about delivery date, punch-list process, remedies for delay, and whether a cash equivalent is possible (DTI usually prefers actual delivery of the advertised prize).

5.4 Valuation

State the fair market value (and basis—zonal value, appraisal, list price) used for calculating taxes and the surety bond. Be prepared to support it with appraisal or internal comparables.

6) Consumer-protection and privacy add-ons you should not skip

Eligibility & disqualifications. Set age (usually 18+), residency rules, and employee/agency exclusions.
How to enter & odds. Be specific and avoid “gotchas.”
Selection method. Describe the randomizer or draw device, seeding, and audit trail; allow DTI/PCSO oversight.
Winner notification. Specify how (registered mail/email/phone), how many attempts, and for how long the prize is reserved before forfeiture.
Publicity release. Get winner consent for name/likeness announcements.
Data Privacy Act (RA 10173). Provide a privacy notice, lawful basis for processing entries, retention period, data-sharing (e.g., with auditors/DTI/PCSO), and security measures; enable data subject rights.
Complaint handling. Provide a hotline/email and commit to response SLAs.
Anti-scam warnings. Tell the public you will not ask winners to pay any “processing fee” or OTPs.

7) Advertising and mandatory copy

Every material (print, digital, OOH, video, social) should include:

Official promo title, coverage, promo period, and draw dates.
Eligibility and how to join (condensed).
Prize description with essential specs and value.
The legend: “Per DTI Fair Trade Permit No. ____, Series of ____.” (For PCSO charity raffles, use the PCSO authorization legend.)
Link/QR to the full mechanics and privacy notice.

8) Typical application dossier (DTI sales promotion)

Expect to prepare:

Application form and government fees.
Full mechanics (terms & conditions), including tax/fee allocation and turnover plan.
List & valuation of prizes (with support for the house-and-lot value).
Draft advertising materials (print layouts, video scripts, social posts) with the proper legend.
Proof of business registration (DTI/SEC/CDA), mayor’s permit, and IDs of authorized signatory.
Proof of title/ownership or enforceable control of the property (e.g., deed, reservation, or developer undertaking).
Surety bond covering the total value of prizes (per DTI rules).
Draw procedure (including randomizer specs, seeding, logging, video documentation plan).
Data privacy documentation (privacy notice, consent language, retention plan).
Post-promo reporting plan and templates.

9) Step-by-step timeline (sales-promotion scenario)

Structuring (2–4 weeks): Decide route (DTI vs. PCSO), confirm title status, draft mechanics, allocate taxes/fees, settle valuation, pick draw method and venues.
Dossier & bonding (1–2 weeks): Compile documents, secure bond, finalize ad mockups.
DTI filing & clearance: File well before launch; incorporate any DTI-required tweaks.
Launch & entry period: Keep entry logs and secure the database; publish mechanics and privacy notice.
Draw & witness: Conduct the draw under approved procedures; prepare minutes and video proof.
Notify winners & verify (KYC/TIN/marital status).
Taxes & transfer: Pay applicable taxes/fees and register the deed; deliver clean title to the winner.
Terminal report: Submit to DTI if required, with proofs of award and publication.

10) Sample clauses you’ll want in your Mechanics

Prize description: “One (1) House and Lot at [Project/Address], approx. [xxx] sqm lot / [xxx] sqm floor area, with [parking/fixtures], FMV ₱[x].”
Taxes & fees: “Sponsor shall shoulder [final prize tax, CGT/withholding (as applicable), DST, transfer tax, registration fees] required to transfer clean title to the winner. Winner shall shoulder [HOA dues from move-in, utilities, fit-out].”
Turnover timeline: “Within 120 days from winner verification and submission of complete documents.”
Forfeiture: “If the winner fails to respond within [15] calendar days from notification or fails to submit complete documents within [30] days, prize is forfeited with prior DTI approval.”
Publicity & privacy: “By participating, entrants agree to the Privacy Notice and, if declared a winner, to reasonable publicity.”
Legend: “Per DTI Fair Trade Permit No. ____ Series of ____.”

11) Common pitfalls (and how to avoid them)

Selling public tickets without PCSO authority. If it’s fundraising, don’t force it under DTI.
Vague tax allocation. Always say who pays what—prize tax, CGT/DST, transfer tax, registry fees.
Unclear property status. Handle mortgages, lis pendens, unpaid RPTs before launch.
Under-valuing the prize. Can cause bonding and tax issues. Use defendable valuation.
Missing data-privacy basics. Post a proper Privacy Notice and secure consent.
Noncompliant ad copy. Always display the DTI/PCSO legend and key dates.
Late filing. Build buffer time for agency queries or revisions.

12) Quick decision tree

Are you promoting a business/brand/product? → DTI Sales Promotion.
Are you raising funds by selling tickets to the public? → PCSO Charity Raffle.
Is it a limited, private event with no public ticket sales? → Observe LGU rules; avoid public promotion; still follow fair-draw and consumer-protection norms.

13) Final reminders

Write your mechanics first—taxes, turnover, eligibility, and draw process—then build your approvals and ads around them.
For a house-and-lot prize, line up the title, taxes, and turnover logistics early; these take the most time.
Keep your records (entries, draw minutes, winner IDs, tax forms, deed/transfer proof) in case of audit or consumer complaints.

Disclaimer

This overview is for general information and planning in the Philippine context. Regulations, tax thresholds, fees, and agency practices change. For a specific campaign, have counsel or a compliant promotions agency review your mechanics, tax treatment, and filings before you announce anything.